NORTHCORE TECHNOLOGIES INC.
(Exact name of Registrant)
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302 The East Mall, Suite 300, Toronto, Ontario Canada M9B 6C7
(Address of principal executive offices)
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Form 20-F
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x
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Form 40-F
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o
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Yes
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o
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No
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Exhibit
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Description
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NORTHCORE REPORTS SECOND QUARTER 2012 FINANCIAL RESULTS
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99.2 |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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99.3 |
MANAGEMENT'S DISCUSSION AND ANALYSIS
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99.4 | CEO CERTIFICATE | |
99.5 | CFO CERTIFICATE |
NORTHCORE TECHNOLOGIES INC.
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Date: August 14, 2012 | By: | /s/ Amit Monga |
Name: Amit Monga |
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Title: Chief Executive Officer
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![]() |
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, ON M9B 6C7
Tel: 416 640-0400 / Fax: 416 640-0412
www.northcore.com
(TSX: NTI; OTCBB: NTLNF)
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Launched Kuklamoo.com, a family Web destination and curated sale site;
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Delivered the first implementation of Northcore’s core architecture on the iPad IOS platform for a major partner;
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Retained investor relations firm, Investor Cubed, to focus on increasing public market awareness of the Company's achievements;
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·
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Completed a new implementation of the Company's Dutch Auction transaction engine;
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·
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Hosted a series of commercial auction events for a major strategic partner; and
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·
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Initiated development on a new version of Northcore’s legacy Material Management application.
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Condensed Interim Consolidated Statements of Financial Position
As at June 30, 2012 and December 31, 2011
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(Expressed in thousands of Canadian dollars)
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(IFRS, Unaudited)
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June 30,
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December 31,
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|||||||
2012
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2011
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ASSETS
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||||||||
CURRENT
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||||||||
Cash
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$ | 813 | $ | 1,760 | ||||
Short-term investments
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40 | - | ||||||
Accounts receivable
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373 | 187 | ||||||
Deposits and prepaid expenses
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77 | 40 | ||||||
1,303 | 1,987 | |||||||
INVESTMENT IN GE ASSET MANAGER, LLC
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14 | 24 | ||||||
CAPITAL ASSETS
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101 | 91 | ||||||
INTANGIBLE ASSETS
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886 | 807 | ||||||
UNALLOCATED PURCHASE PRICE
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1,191 | - | ||||||
TOTAL ASSETS
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$ | 3,495 | $ | 2,909 | ||||
LIABILITIES
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CURRENT
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Accounts payable
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$ | 436 | $ | 239 | ||||
Accrued liabilities
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304 | 173 | ||||||
Current portion of contingent consideration
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71 | - | ||||||
Deferred revenue
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112 | 3 | ||||||
789 | 415 | |||||||
CONTINGENT CONSIDERATION
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63 | - | ||||||
TOTAL LIABILITIES
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852 | 415 | ||||||
TOTAL SHAREHOLDERS’ EQUITY
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2,643 | 2,494 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$ | 3,495 | $ | 2,909 |
Northcore Technologies Inc.
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Condensed Interim Consolidated Statements of Operations and Comprehensive Loss
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(Expressed in thousands of Canadian dollars, except per share amounts)
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(IFRS, Unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Revenues
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$ | 415 | $ | 187 | $ | 645 | $ | 370 | ||||||||
Income from GE Asset Manager, LLC
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19 | 1 | 37 | 36 | ||||||||||||
Operating expenses:
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General and administrative
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428 | 585 | 864 | 957 | ||||||||||||
Customer service and technology
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331 | 181 | 497 | 362 | ||||||||||||
Sales and marketing
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77 | 65 | 104 | 134 | ||||||||||||
Stock-based compensation
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140 | 1,170 | 483 | 1,253 | ||||||||||||
Depreciation
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14 | 6 | 25 | 12 | ||||||||||||
Total operating expenses
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990 | 2,007 | 1,973 | 2,718 | ||||||||||||
Loss before the undernoted
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(556 | ) | (1,819 | ) | (1,291 | ) | (2,312 | ) | ||||||||
Interest expense:
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Interest on notes payable and secured subordinated notes
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- | 28 | - | 73 | ||||||||||||
Accretion of secured subordinated notes
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- | 33 | - | 69 | ||||||||||||
Total interest expense
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- | 61 | - | 142 | ||||||||||||
Loss and comprehensive loss for the period
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$ | (556 | ) | $ | (1,880 | ) | $ | (1,291 | ) | $ | (2,454 | ) | ||||
Loss per share, basic and diluted
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$ | (0.002 | ) | $ | (0.010 | ) | $ | (0.006 | ) | $ | (0.013 | ) | ||||
Weighted average number of shares outstanding, basic and diluted (000's)
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234,625 | 188,796 | 230,783 | 183,341 |
Northcore Technologies Inc.
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Reconciliation of Loss to Operational EBITDA
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(Expressed in thousands of Canadian dollars)
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(IFRS, Unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2012
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2011
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2012
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2011
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Loss for the period, as per above
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$ | (556 | ) | $ | (1,880 | ) | $ | (1,291 | ) | $ | (2,454 | ) | ||||
Reconciling items:
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Stock-based compensation
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140 | 1,170 | 483 | 1,253 | ||||||||||||
Depreciation
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14 | 6 | 25 | 12 | ||||||||||||
Interest expense
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- | 61 | - | 142 | ||||||||||||
Non-recurring professional fees ***
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27 | 235 | 52 | 235 | ||||||||||||
Operational EBITDA
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$ | (375 | ) | $ | (408 | ) | $ | (731 | ) | $ | (812 | ) |
June 30,
2012 |
December 31,
2011
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ASSETS
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CURRENT
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Cash
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$ | 813 | $ | 1,760 | ||||
Short-term investments
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40 | - | ||||||
Accounts receivable
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373 | 187 | ||||||
Deposits and prepaid expenses
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77 | 40 | ||||||
1,303 | 1,987 | |||||||
INVESTMENT IN GE ASSET MANAGER, LLC (Note 5)
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14 | 24 | ||||||
CAPITAL ASSETS
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101 | 91 | ||||||
INTANGIBLE ASSETS (Note 6)
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886 | 807 | ||||||
UNALLOCATED PURCHASE PRICE (Note 7)
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1,191 | - | ||||||
$ | 3,495 | $ | 2,909 | |||||
LIABILITIES
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CURRENT
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Accounts payable
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$ | 436 | $ | 239 | ||||
Accrued liabilities
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170 | 173 219 | ||||||
Contingent consideration (Note 7)
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71 | - | ||||||
Deferred revenue
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112 | 3 | ||||||
789 | 415 | |||||||
CONTINGENT CONSIDERATION (Note 7)
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63 | - | ||||||
852 | 415 | |||||||
SHAREHOLDERS’ EQUITY
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Share capital (Note 8)
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118,332 | 117,359 | ||||||
Contributed surplus
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3,586 | 3,586 | ||||||
Warrants
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836 | 836 | ||||||
Stock options (Note 9)
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4,157 | 3,690 | ||||||
Deficit
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(124,268 | ) | (122,977 | ) | ||||
2,643 | 2,494 | |||||||
$ | 3,495 | $ | 2,909 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss
For the Three and Six Month Periods Ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars, except per share amounts) (Unaudited)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Revenues (Note 10)
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$ | 415 | $ | 187 | $ | 645 | $ | 370 | ||||||||
Income from GE Asset Manager, LLC (Note 5)
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19 | 1 | 37 | 36 | ||||||||||||
Operating expenses:
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General and administrative
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428 | 585 | 864 | 957 | ||||||||||||
Customer service and technology
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331 | 181 | 497 | 362 | ||||||||||||
Sales and marketing
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77 | 65 | 104 | 134 | ||||||||||||
Stock-based compensation (Note 9)
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140 | 1,170 | 483 | 1,253 | ||||||||||||
Depreciation
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14 | 6 | 25 | 12 | ||||||||||||
Total operating expenses
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990 | 2,007 | 1,973 | 2,718 | ||||||||||||
Loss from operations
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(556 | ) | (1,819 | ) | (1,291 | ) | (2,312 | ) | ||||||||
Finance costs:
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Interest on notes payable and secured subordinated notes
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- | 28 | - | 73 | ||||||||||||
Accretion of secured subordinated notes
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- | 33 | - | 69 | ||||||||||||
Total finance costs`
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- | 61 | - | 142 | ||||||||||||
LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD
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$ | (556 | ) | $ | (1,880 | ) | $ | (1,291 | ) | $ | (2,454 | ) | ||||
LOSS PER SHARE, BASIC AND DILUTED
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$ | (0.002 | ) | $ | (0.010 | ) | $ | (0.006 | ) | $ | (0.013 | ) | ||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED (000’s)
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234,625 | 188,796 | 230,783 | 183,341 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
For the Six Month Periods Ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars) (Unaudited)
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SIX MONTHS ENDED JUNE 30, 2012
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Share Capital
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Contributed Surplus
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Warrants
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Stock Options
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Other
Options
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Conversion Feature on Secured Notes
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Deficit
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Total
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Opening balance - January 1, 2012
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$ | 117,359 | $ | 3,586 | $ | 836 | $ | 3,690 | $ | - | $ | - | $ | (122,977 | ) | $ | 2,494 | |||||||||||||||
Changes:
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Shares issued for acquisition of businesses | 933 | - | - | - | - | - | - | 933 | ||||||||||||||||||||||||
Exercise of stock options
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40 | - | - | (16 | ) | - | - | - | 24 | |||||||||||||||||||||||
Stock-based compensation | - | - | - | 483 | - | - | - | 483 | ||||||||||||||||||||||||
Loss for the period
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- | - | - | - | - | - | (1,291 | ) | (1,291 | ) | ||||||||||||||||||||||
Closing balance – June 30, 2012
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$ | 118,332 | $ | 3,586 | $ | 836 | $ | 4,157 | $ | - | $ | - | $ | (124,268 | ) | $ | 2,643 |
SIX MONTHS ENDED JUNE 30, 201
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Share Capital
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Contributed Surplus
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Warrants
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Stock Options
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Other
Options
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Conversion Feature on Secured Notes
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Deficit
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Total
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Opening balance - January 1, 2011
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$ | 110,767 | $ | 3,462 | $ | 834 | $ | 1,949 | $ | - | $ | 458 | $ | (119,043 | ) | $ | (1,573 | ) | ||||||||||||||
Changes:
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Conversion of notes
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179 | - | 48 | - | - | (106 | ) | - | 121 | |||||||||||||||||||||||
Equity private placement
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456 | - | 149 | - | 108 | - | - | 713 | ||||||||||||||||||||||||
Warrants issued for debt settlement
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- | - | 200 | - | - | - | - | 200 | ||||||||||||||||||||||||
Exercise of warrants
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1,896 | - | (226 | ) | - | - | - | - | 1,670 | |||||||||||||||||||||||
Payment of interest
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1 | - | - | - | - | - | - | 1 | ||||||||||||||||||||||||
Exercise of stock options
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215 | - | - | (85 | ) | - | - | - | 130 | |||||||||||||||||||||||
Stock-based compensation
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- | - | - | 1,253 | - | - | - | 1,253 | ||||||||||||||||||||||||
Loss for the period
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- | - | - | - | - | - | (2,454 | ) | (2,454 | ) | ||||||||||||||||||||||
Closing balance – June 30, 2011
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$ | 113,514 | $ | 3,462 | $ | 1,005 | $ | 3,117 | $ | 108 | $ | 352 | $ | (121,497 | ) | $ | 61 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Cash Flows
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For the Six Months Ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars) (Unaudited)
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2012
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2011
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NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES
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OPERATING
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Loss for the period
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$ | (1,291 | ) | $ | (2,454 | ) | ||
Adjustments for:
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Income from GE Asset Manager, LLC (Note 5)
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(37 | ) | (36 | ) | ||||
Stock-based compensation
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483 | 1,253 | ||||||
Depreciation
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25 | 12 | ||||||
Cash interest expense
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- | 73 | ||||||
Accretion of secured subordinated notes
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- | 69 | ||||||
(820 | ) | (1,083 | ) | |||||
Changes in non-cash operating working capital (Note 11)
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5 | 209 | ||||||
(815 | ) | (874 | ) | |||||
INVESTING
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Cash distribution from investment in GE Asset Manager, LLC (Note 5) | 47 | 50 | ||||||
Purchase of capital assets
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(27 | ) | (7 | ) | ||||
Acquisition of intangible assets (Note 6)
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(79 | ) | - | |||||
Acquisition of businesses, net of cash acquired (Note 7)
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(97 | ) | - | |||||
(156 | ) | 43 | ||||||
Stock options exercised (Note 9 (c))
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24 | 130 | ||||||
Warrants exercised
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- | 1,670 | ||||||
Repayment of notes payable
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- | (530 | ) | |||||
Issuance of common shares and warrants
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- | 838 | ||||||
Share issuance costs
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- | (125 | ) | |||||
Interest paid
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- | (79 | ) | |||||
24 | 1,904 | |||||||
NET CASH INFLOW (OUTFLOW) DURING THE PERIOD
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(947 | ) | 1,073 | |||||
CASH, BEGINNING OF PERIOD
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1,760 | 51 | ||||||
CASH, END OF PERIOD
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$ | 813 | $ | 1,124 |
1.
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DESCRIPTION OF BUSINESS
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2.
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GOING CONCERN
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These unaudited condensed interim consolidated financial statements do not include adjustments or disclosures that may result from the Company’s inability to continue as a going concern. If the going concern assumption were not appropriate for these unaudited condensed interim consolidated financial statements, then adjustments would be necessary in the carrying values of assets and liabilities, the reported net losses and the financial position classifications used.
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The continued existence beyond June 30, 2012 is dependent on the Company’s ability to increase revenue from existing products and services, and to expand the scope of its product offering which entails a combination of internally developed software and business ventures with third parties, and to raise additional financing.
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3.
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SIGNIFICANT ACCOUNTING POLICIES
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IFRS 9, Financial Instruments was issued by the IASB in October 2010 and will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015.
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IFRS 13, Fair Value Measurement was issued by the IASB in May 2011. IFRS 13 establishes new guidance on fair value measurement and disclosure requirements for IFRSs and U.S. generally accepted accounting principles (GAAP). The guidance, set out in IFRS 13 and an update to Topic 820 in the FASB’s Accounting Standards Codification (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRSs and US GAAP and to bring about their convergence. The standard is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.
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IAS 1, Presentation of Financial Statements was amended by the IASB in June 2011 in order to align the presentation of items in other comprehensive income with U.S. GAAP standards. Items in other comprehensive income will be required to be presented in two categories: items that will be reclassified into profit or loss and those that will not be reclassified. The flexibility to present a statement of comprehensive income as one statement or two separate statements of profit and loss and other comprehensive income remains unchanged. The amendments to IAS 1 are effective for annual periods beginning on or after July 1, 2012.
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4.
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TRANSACTIONS WITH RELATED PARTIES
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5.
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INVESTMENT IN GE ASSET MANAGER, LLC
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6.
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INTANGIBLE ASSETS
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7.
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ACQUISITION OF BUSINESSES
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Amount
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(in thousands)
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Cash
|
$ | 100 | ||
Common shares (7,778,000 at $0.12 per share)
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933 | |||
Net present value of estimated future payments
|
134 | |||
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$ | 1,167 |
Amount
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(in thousands)
|
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Cash
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$ | 3 | ||
Short-term investments
|
40 | |||
Accounts receivable
|
79 | |||
Other current assets
|
15 | |||
Capital assets
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8 | |||
Accounts payable
|
(101 | ) | ||
Other current liabilities
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(68 | ) | ||
Total net assets
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(24 | ) | ||
Unallocated purchase price
|
1,191 | |||
$ | 1,167 |
8.
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SHARE CAPITAL
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a)
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Authorized
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b)
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Outstanding Common Shares
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Number
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Amount
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|||||||
(in thousands of shares and dollars)
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Opening balance – January 1, 2012
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226,598 | $ | 117,359 | |||||
Acquisition of businesses (Note 7)
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7,778 | 933 | ||||||
Stock options exercised (Note 9 (c))
|
250 | 40 | ||||||
Closing balance – June 30, 2012
|
234,626 | $ | 118,332 |
9.
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STOCK OPTIONS
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a)
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The following table summarizes the transactions within stock options.
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Number
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Amount
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|||||||
(in thousands of options and dollars)
|
||||||||
Opening balance, January 1, 2012
|
19,290 | $ | 3,690 | |||||
Granted (Note 9 (b))
|
5,375 | - | ||||||
Exercised (Note 9 (c))
|
(250 | ) | (16 | ) | ||||
Cancelled
|
(3,319 | ) | - | |||||
Stock-based compensation expense
|
- | 483 | ||||||
Closing balance – June 30, 2012
|
21,096 | $ | 4,157 | |||||
Exercisable
|
17,155 |
b)
|
During the six months ended June 30, 2012, the Company granted 5,375,000 stock options to employees, officers and directors of the Company. The weighted average grant date fair value of $0.06 per option was valued using the Cox-Rubinstein binomial valuation model with the following assumptions: volatility of 111 percent based on a historical trend of five years, a risk free interest rate of 1.60 percent, a maturity of five years, exercise price of $0.09 and a dividend yield of nil.
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c)
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During the six months ended June 30, 2012, total proceeds of $24,000 were realized from the exercise of 250,000 stock options (book value of $16,000) at an average exercise price of $0.10. The average trading price at the time of exercise of these options was $0.11.
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10.
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REVENUES
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||||
(in thousands)
|
|||||||||||||||||
Services
|
$ | 310 | $ | 126 | $ | 487 | $ | 250 | |||||||||
Hosting fees
|
105 | 61 | 158 | 120 | |||||||||||||
$ | 415 | $ | 187 | $ | 645 | $ | 370 |
11.
|
SUPPLEMENTAL CASH FLOWS INFORMATION
|
Six Months Ended
June 30,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Accounts receivable
|
$ | (107 | ) | $ | (55 | ) | ||
Deposits and prepaid expenses
|
(22 | ) | (2 | ) | ||||
Accounts payable
|
95 | 17 | ||||||
Accrued liabilities
|
(70 | ) | 142 | |||||
Deferred revenue
|
109 | 107 | ||||||
$ | 5 | $ | 209 |
|
Six Months Ended
June 30,
|
|||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Issuance of common shares for acquisition of businesses
|
$ | 933 | $ | - |
12.
|
FINANCIAL RISK FACTORS
|
a)
|
Credit Risk
|
June 30,
2012
|
December 31,
2011
|
|||||||
(in thousands)
|
||||||||
Current
|
$ | 190 | $ | 144 | ||||
Past due (61-120 days)
|
55 | 36 | ||||||
Past due (> 120 days)
|
128 | 7 | ||||||
|
$ | 373 | $ | 187 |
b)
|
Liquidity Risk
|
CORPORATE OFFICES
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario
M9B 6C7
Toll free: 1 888 287 7467
Email: nvestor-relations@northcore.com
Website: www.northcore.com
Envision Online Media Inc.
1150 Morrison Drive, Suite 201
Ottawa, Ontario
K2H 8S9
Website: www.envisiononline.ca
|
SHARES OUTSTANDING
As at June 30, 2012:
234,625,479 common shares
REGISTRAR & TRANSFER AGENT
Equity Financial Trust Company
200 University Avenue, Suite 400
Toronto, Ontario
M5H 4H1
STOCK EXCHANGE LISTINGS
Toronto Stock Exchange
Symbol: NTI
OTC Bulletin Board
Symbol: NTLNF
AUDITORS
Collins Barrow Toronto LLP
11 King Street West
Suite 700, Box 27
Toronto, Ontario
M5H 4C7
![]() © 2012 Northcore Technologies Inc.
|
·
|
Streamline the sourcing and procurement of critical assets, while reducing purchasing costs;
|
·
|
Track the location of assets to support improved asset utilization and redeployment of idle equipment;
|
·
|
Manage the appraisal of used equipment more effectively, resulting in a better understanding of fair market values; and
|
·
|
Accelerate the sale of surplus assets while generating higher yields.
|
·
|
Launched Kuklamoo.com, a family Web destination and curated sale site;
|
·
|
Delivered the first implementation of Northcore’s core architecture on the iPad IOS platform for a major partner;
|
·
|
Retained investor relations firm, Investor Cubed, to focus on increasing public market awareness of the Company's achievements;
|
·
|
Completed a new implementation of the Company's Dutch Auction transaction engine;
|
·
|
Hosted a series of commercial auction events for a major strategic partner; and
|
·
|
Initiated development on a new version of Northcore’s legacy Material Management application.
|
·
|
The timing of our future capital needs and our ability to raise additional capital when needed;
|
·
|
Increasingly longer sales cycles;
|
·
|
Potential fluctuations in our financial results and our difficulties in forecasting;
|
·
|
Volatility of the stock markets and fluctuations in the market price of our stock;
|
·
|
The ability to buy and sell our shares on the OTC Bulletin Board;
|
·
|
Our ability to compete with other companies in our industry;
|
·
|
Our dependence upon a limited number of customers;
|
·
|
Our ability to retain and attract key personnel;
|
·
|
Risk of significant delays in product development;
|
·
|
Failure to timely develop or license new technologies;
|
·
|
Risks relating to any requirement to correct or delay the release of products due to software bugs or errors;
|
·
|
Risk of system failure or interruption;
|
·
|
Risks associated with any further dramatic expansions and retractions in the future;
|
·
|
Risks associated with international operations;
|
·
|
Problems which may arise in connection with the acquisition or integration of new businesses, products, services, technologies or other strategic relationships;
|
·
|
Risks associated with protecting our intellectual property, and potentially infringing the intellectual property rights of others;
|
·
|
Fluctuations in currency exchanges; and
|
·
|
The ability to enforce legal claims against us or our officers or directors.
|
Quarter ended
|
Jun 30,
2012
|
Mar 31,
2012
|
Dec 31,
2011
|
Sep 30,
2011
|
Jun 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sep 30,
2010
|
||||||||||||||||||||||||
(in thousands of Canadian dollars, except per share amounts)
|
||||||||||||||||||||||||||||||||
Revenues
|
$ | 415 | $ | 230 | $ | 212 | $ | 203 | $ | 187 | $ | 183 | $ | 176 | $ | 132 | ||||||||||||||||
Income from GE Asset Manager
|
19 | 18 | 15 | 18 | 1 | 35 | 11 | 4 | ||||||||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||||||||||
General and administrative
|
428 | 436 | 362 | 351 | 585 | 372 | 391 | 311 | ||||||||||||||||||||||||
Customer service and technology
|
331 | 166 | 183 | 181 | 181 | 181 | 184 | 174 | ||||||||||||||||||||||||
Sales and marketing
|
77 | 27 | 51 | 75 | 65 | 69 | 54 | 42 | ||||||||||||||||||||||||
Stock-based compensation
|
140 | 343 | 248 | 372 | 1,170 | 83 | 143 | 77 | ||||||||||||||||||||||||
Depreciation
|
14 | 11 | 12 | 8 | 6 | 6 | 6 | 5 | ||||||||||||||||||||||||
Total operating expenses
|
990 | 983 | 856 | 987 | 2,007 | 711 | 778 | 609 | ||||||||||||||||||||||||
Loss from operations
|
(556 | ) | (735 | ) | (629 | ) | (766 | ) | (1,819 | ) | (493 | ) | (591 | ) | (473 | ) | ||||||||||||||||
Finance costs:
|
||||||||||||||||||||||||||||||||
Interest on notes payable and secured subordinated notes
|
- | - | 10 | 20 | 28 | 45 | 54 | 39 | ||||||||||||||||||||||||
Accretion of secured subordinated notes
|
- | - | 21 | 34 | 33 | 36 | 32 | 29 | ||||||||||||||||||||||||
Total finance costs
|
- | - | 31 | 54 | 61 | 81 | 86 | 68 | ||||||||||||||||||||||||
Other expenses (income) :
|
||||||||||||||||||||||||||||||||
Gain on settlement of debt
|
- | - | - | - | - | - | - | (57 | ) | |||||||||||||||||||||||
Provision for impaired investment
|
- | - | - | - | - | - | - | 544 | ||||||||||||||||||||||||
Total other expenses
|
- | - | - | - | - | - | - | 487 | ||||||||||||||||||||||||
Loss and comprehensive loss for the period
|
$ | (556 | ) | $ | (735 | ) | $ | (660 | ) | $ | (820 | ) | $ | (1,880 | ) | $ | (574 | ) | $ | ( 677 | ) | $ | (1,028 | ) | ||||||||
Loss per share - basic and diluted
|
$ | (0.002 | ) | $ | (0.003 | ) | $ | (0.003 | ) | $ | (0.004 | ) | $ | (0.010 | ) | $ | (0.003 | ) | $ | (0.004 | ) | $ | (0.006 | ) |
Quarter ended
|
Jun 30,
2012
|
Mar 31,
2012
|
Dec 31,
2011
|
Sep 30,
2011
|
Jun 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sep 30,
2010
|
||||||||||||||||||||||||
(in thousands of Canadian dollars)
|
||||||||||||||||||||||||||||||||
Loss for the period, as per above
|
$ | (556 | ) | $ | (735 | ) | $ | (660 | ) | $ | (820 | ) | $ | (1,880 | ) | $ | (574 | ) | $ | (677 | ) | $ | (1,028 | ) | ||||||||
Reconciling items:
|
||||||||||||||||||||||||||||||||
Stock-based compensation
|
140 | 343 | 248 | 372 | 1,170 | 83 | 143 | 77 | ||||||||||||||||||||||||
Depreciation
|
14 | 11 | 12 | 8 | 6 | 6 | 6 | 5 | ||||||||||||||||||||||||
Interest expense
|
- | - | 31 | 54 | 61 | 81 | 86 | 68 | ||||||||||||||||||||||||
Provision for impaired investment
|
- | - | - | - | - | - | - | 544 | ||||||||||||||||||||||||
Gain on settlement of debt
|
- | - | - | - | - | - | - | (57 | ) | |||||||||||||||||||||||
Non-recurring professional fees
|
27 | 25 | - | - | 235 | - | - | - | ||||||||||||||||||||||||
OPERATIONAL EBITDA
|
$ | (375 | ) | $ | (356 | ) | $ | (369 | ) | $ | (386 | ) | $ | (408 | ) | $ | (404 | ) | $ | (442 | ) | $ | (391 | ) |
(1)
|
Operational EBITDA is defined as the loss before interest, taxes, depreciation, stock-based compensation, non-cash and non-recurring items. The Company considers Operational EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows. Included in non-recurring professional fees for 2012 were acquisition related costs in connection with the acquisition of Envision and Kuklamoo. Non-recurring professional fees in 2011 were in connection with the recruitment of new senior management and Board members.
|
Amount
|
||||
(in thousands of Canadian dollars)
|
||||
Cash
|
$ | 100 | ||
Common shares (7,778,000 at $0.12 per share)
|
933 | |||
Net present value of estimated future payments
|
134 | |||
|
$ | 1,167 |
Amount
|
||||
(in thousands of Canadian dollars)
|
||||
Cash
|
$ | 3 | ||
Short-term investments
|
40 | |||
Accounts receivable
|
79 | |||
Other current assets
|
15 | |||
Capital assets
|
8 | |||
Accounts payable
|
(101 | ) | ||
Other current liabilities
|
(68 | ) | ||
Total net assets
|
(24 | ) | ||
Unallocated purchase price
|
1,191 | |||
$ | 1,167 |
Total
|
Remainder of 2012
|
2013
|
2014
|
2015
|
2016
|
|||||||||||||||||||
( in thousands of Canadian dollars )
|
||||||||||||||||||||||||
Operating leases
|
$ | 376 | $ | 90 | $ | 156 | $ | 130 | $ | - | $ | - | ||||||||||||
License agreements
|
150 | 50 | 50 | 50 | - | - | ||||||||||||||||||
$ | 526 | $ | 140 | $ | 206 | $ | 180 | $ | - | $ | - |
·
|
The amount of revenue can be measured reliably;
|
·
|
The stage of completion can be measured reliably;
|
·
|
The receipt of economic benefits is probable; and
|
·
|
The costs incurred or to be incurred can be measured reliably.
|
·
|
The amount of revenue can be measured reliably;
|
·
|
The risks and rewards of ownership have been transferred to the buyer;
|
·
|
The receipt of economic benefits is probable; and
|
·
|
The costs incurred or to be incurred can be measured reliably.
|
·
|
Application Development Fees
|
·
|
Implementation, Training and Consulting Service Fees
|
·
|
Product Maintenance and Customer Support Fees
|
·
|
Hosting Fees
|
·
|
Multiple Deliverable Revenue Arrangements
|
·
|
IFRS 9, Financial Instruments was issued by the IASB in October 2010 and will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015.
|
·
|
IFRS 13, Fair Value Measurement was issued by the IASB in May 2011. IFRS 13 establishes new guidance on fair value measurement and disclosure requirements for IFRSs and U.S. generally accepted accounting principles (GAAP). The guidance, set out in IFRS 13 and an update to Topic 820 in the FASB’s Accounting Standards Codification (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRSs and US GAAP and to bring about their convergence. The standard is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.
|
·
|
IAS 1, Presentation of Financial Statements was amended by the IASB in June 2011 in order to align the presentation of items in other comprehensive income with US GAAP standards. Items in other comprehensive income will be required to be presented in two categories: items that will be reclassified into profit or loss and those that will not be reclassified. The flexibility to present a statement of comprehensive income as one statement or two separate statements of profit and loss and other comprehensive income remains unchanged. The amendments to IAS 1 are effective for annual periods beginning on or after July 1, 2012.
|
CORPORATE OFFICES
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario
M9B 6C7
Toll free: 1 888 287 7467
Email: nvestor-relations@northcore.com
Website: www.northcore.com
Envision Online Media Inc.
1150 Morrison Drive, Suite 201
Ottawa, Ontario
K2H 8S9
Website: www.envisiononline.ca
|
SHARES OUTSTANDING
As at June 30, 2012:
234,625,479 common shares
REGISTRAR & TRANSFER AGENT
Equity Financial Trust Company
200 University Avenue, Suite 400
Toronto, Ontario
M5H 4H1
STOCK EXCHANGE LISTINGS
Toronto Stock Exchange
Symbol: NTI
OTC Bulletin Board
Symbol: NTLNF
AUDITORS
Collins Barrow Toronto LLP
11 King Street West
Suite 700, Box 27
Toronto, Ontario
M5H 4C7
![]() © 2012 Northcore Technologies Inc.
|
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